FDIC Transaction Account Guarantee

First Northern Bank is participating in the Federal Deposit Insurance Corporation's (FDIC) Transaction Account Guarantee Program. Under that program, through December 31, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. This includes NOW accounts with an interest rate less than 0.50% through June 30, 2010; and effective July 1, 2010, NOW accounts with an interest rate less than 0.25%.

Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. Monies swept from a non-interest bearing transaction account held at the Bank to another type of account held at the Bank will not be covered under the FDIC's Transaction Account Guarantee Program. Instead, the monies will be insured under the FDIC's general deposit insurance rules.